Alan Kohler is one of Australia’s most experienced business commentators. Alan has been a trusted source of investment advice to Australians for many years, and in 2005 he founded Eureka Report - Australia’s #1 online investment report. Along with Robert Gottliebsen and Stephen Bartholomeusz, Alan also founded Business Spectator, the popular business news and commentary website. Alan is the regular finance presenter on the ABC News and producer of the popular nightly graph (or two).
National Australia Bank Limited will buy back up to $300 million ordinary shares on-market to partially offset the dilutive impact of its interm dividend reinvestment offering.
In addition to the buyback, the bank will also issue new shares for its dividend reinvestment plan and bonus share plan.
NAB executive director finance Mark Joiner said, “NAB has a strong balance sheet and capital position and it is appropriate on this occasion to partially neutralise the dilutive impact of the dividend reinvestment plan.”
Last week, Australia and New Zealand Banking Group Ltd announced it would spend $425 million buying back some of its shares, to "neutralise the dilutive impact" of issuing new shares it offered investors in April as an alternative to a cash dividend.
Bank of Queensland Ltd also launched a buyback of up to $600 million across two tranches of senior unsecured notes due in early 2015.